Hy-Tech Engineers

IPO Size: Rs. 136 cr

• Fresh Issue of Rs.60 cr (12% dilution) for (i) Rs. 30 cr capex (ii) Rs. 16 cr repayment of Rs. 29 cr gross debt
• Offer for Sale (OFS) of Rs. 76 cr by promoter (98% to shrink to 71%)

Price band: Rs. 50-53 per share

M cap: Rs. 503 cr (IPO is 27% of m cap)

IPO Date: Mon 24^th Aug to Thu 27^th Aug 2026, Listing Tue 1^st Sep 2026

Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.

 

B2B Hydraulics Fitting Maker

Hy-Tech Engineers is a 4-decade old Thane based manufacturer of hydraulic fittings such as DIN-metric fittings, JIC flared and flareless fittings, O-Ring Face Seal (ORFS) fittings and conversion fittings. Promoter by IIT-B alumnus, company’s products are manufactured at 4 plants and used by OEMs making construction machinery, automotive, farm equipment, injection moulding machines, hydraulic systems. In addition, it has certification to supply for railways and defence use. Nearly 30% of Rs. 189 cr topline is earned from exports, mainly to USA and Belgium.

 

Fresh Issue for Capex

Company has a current installed capacity of 39 million pieces per annum which is 71% utilized in FY26. With Rs. 30 cr capex from fresh issue proceeds, it is expanding capacity by 48% to 57 million pieces, over next 18 months. While last 3 year revenue CAGR has been 12%, FY26 revenue jumped 17% YoY, making future outlook promising, as nearly 95% revenue comes from repeat customer.  

It operates on a fixed asset turn of nearly 3x, and has incurred Rs. 78 cr in capex in last 3 fiscals. Fresh issue can potentially add Rs. 100 cr in incremental revenue FY29E onwards.  

 

High Margin Business

Due to the high engineered nature of products, company’s margins are attractive at 65% gross, EBITDA of 22% and net margin of 12%. FY26 PAT stood at Rs. 22.6 cr, leading to an EPS of Rs. 2.7, on equity of Rs. 42 cr (face value Rs. 5 each).

On a net worth of Rs. 122 cr as of 31.3.26, company will become net debt free post IPO.

 

Attractive Pricing

M Cap of Rs.503 cr is undemanding for FY27E EPS of close to Rs. 3 implying a current year PE multiple of 18x. This is quite undervalued for double digit net margin, 20% RoE and planned capacity increase from fresh issue proceeds, despite having small topline of sub-Rs. 200 cr.